# In the matter of Unitex Apparels Pvt. Ltd. I.A. No. 76-2020 in C.P. (IB) No. 214-BB-2020

> NCLT judgment dated 2020-02-26. Citation: TCN-2020-NCLT-01797. The case pertains to I.A.No.76/2020, I.A.No.74/2020 and I.A.No.75/2020 in…

- **Court:** NCLT
- **Order date:** 26 Feb 2020
- **Citation:** TCN-2020-NCLT-01797
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/unitex-apparels-pvt-ltd-ia-no-76-2020-in-cp-ib-no-214-bb-2020-9c18c03a

## Summary

### Background

The case pertains to I.A.No.76/2020, I.A.No.74/2020 and I.A.No.75/2020 in C.P.(IB)No.214/BB/2019 filed under Section 60(5)(c) of the IBC, 2016, read with Rule 11 of the NCLT Rules, 2016. These applications seek to condone a delay of 69 days in filing the Proof of Claim by the Applicant/Financial Creditor with the Respondent/Resolution Professional and to direct the Respondent/Resolution Professional to accept and consider the claim. The main Company Petition was filed by M/s. Madura Coats Private Limited under Section 9 of the IBC, 2016, and was admitted on 29.10.2019, initiating CIRP and appointing Mr. Ratnakar Shetty as IRP. A public announcement was made on 07.11.2019, with a last date for submission of claims on 21.11.2019.

## Facts

M/s. Madura Coats Private Limited initiated Corporate Insolvency Resolution Process (CIRP) against a Corporate Debtor by filing a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The petition was admitted on 29.10.2019, and Mr. Ratnakar Shetty was appointed as the Interim Resolution Professional (IRP). A public announcement was made on 07.11.2019, setting 21.11.2019 as the last date for creditors to submit their claims. Several Financial Creditors, including M/s. Triburg Sportswear, Mrs. Anuradha Bakshi, and M/s. Triburg Consultants Private Limited, filed applications (I.A.No.76/2020, I.A.No.74/2020 and I.A.No.75/2020 respectively) seeking condonation of a 69-day delay in submitting their claims. These creditors claimed they were unaware of

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## Issues and analysis

### Issue 1: Whether the delay of 69 days in filing the proof of claim by the Applicant/Financial Creditor …

**Ratio:** The ratio is based on the principle of natural justice and the need to provide creditors

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**Reasoning:** The NCLT reasoned that the Applicant's explanation for the delay was convincing. The

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**Interpretation:** The interpretation involves a liberal construction of the provisions of the IBC

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**Application:** The ratio and reasoning were applied to the specific facts of the case. The

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** M/s. Triburg…
- **Respondents:** Ratnakar…

## Timeline

- **2019-10-29 — Admission o…**: The Adjudicating Authority admitted the Company Petition filed by M/s. Madura Coats…
- **2019-11-07 — Public Annou…**: The Interim Resolution Professional made a public announcement in Financial Express…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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